Income tax department clarifies on making PAN inoperational

Share


The deadline for linking your Permanent Account Number (PAN) with Aadhaar has already passed. However, this does not mean that your PAN may become inoperative. As per a circular issued by CBDT, PAN, not linked to Aadhaar, would become “inoperative” after March 31, 2023. Those taxpayers who link their PAN with biometric Aadhaar by June 30, 2022, would be required to pay late fees of 500. Beyond that, the penalty would rise to 1,000.

In order to mitigate the inconvenience to taxpayers, as per notification dated March 29, 2022, a window of opportunity has been provided to taxpayers up to March 31, 2023, to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions, the CBDT said, adding such intimation would have to be accompanied by late fees.

“Hence, in order to have the smooth application of section 234H and existing rule 114AAA, it is clarified that the impact of sub-rule (2) of rule 114AAA i.e. where a person. whose permanent account number has become inoperative under sub-rule (1). is required to furnish. intimate or quote his permanent account number under the Act. it shall be deemed that he has not furnished. intimated or quoted the permanent account number. as the case may be. in accordance with the provisions of the Act. and he shall be liable for all the consequences under the Act for not furnishing. intimating or quoting the permanent account number. shall come into effect from 1 st April 2023 and the period beginning from 1st April 2022 and ending with 31st March 2023, shall be the period during which the said sub-rule shall not have its negative consequences of the nature referred to in the said sub-rule or specified in paras 4 and 4.1 above. However, the taxpayer shall be liable to pay a fee in accordance with sub-rule (5A) of rule 114,” the income tax department said in a circular dated 30 March.

After March 31, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the Act for not furnishing, intimating or quoting the PAN shall apply to such taxpayers, the CBDT added.

PAN is used for various transactions like opening a bank account, purchase of immovable property or proof of identity. Once your PAN becomes inactive, the person will be restricted from doing financial transactions where quoting of PAN is mandatory.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.


Download
the App to get 14 days of unlimited access to Mint Premium absolutely free!



Source link

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.